-Refer to the graph above.If the monopoly firm maximizes profit,it will produce:
A)15 units of output and producer surplus will be $28.125.
B)15 units of output and producer surplus will be $16.875.
C)25 units of output and producer surplus will be $15.625.
D)30 units of output and producer surplus will be $60.

Question

-Refer to the graph above.If the monopoly firm maximizes profit,it will produce:
A)15 units of output and producer surplus will be $28.125. 
B)15 units of output and producer surplus will be $16.875. 
C)25 units of output and producer surplus will be $15.625. 
D)30 units of output and producer surplus will be $60.

Quizplus · Accepted Answer

A monopoly maximizes profit where marginal cost (MC) equals marginal revenue (MR). At 15 units, the producer surplus is calculated as the area above the MC curve and below the price level, resulting in $28.125.

-Refer to the Graph Above